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Analysis and Adjustment of Sales <br /> The major points of comparison for this type of analysis include the property rights conveyed, <br /> the financial terms incorporated into the transaction, the conditions or motivations surrounding <br /> the sale, changes in market conditions since the sale, the location of the real estate, its physical <br /> traits and the economic characteristics of the property. <br /> The first adjustment made to the market data takes into account differences between the subject <br /> property and the comparable property sales with regard to the legal interest transferred. <br /> Advantageous financing terms or atypical conditions of sale are then adjusted to reflect a normal <br /> market transaction. Next, changes in market conditions are accounted for, creating a time <br /> adjusted price. Lastly, adjustments for location, physical traits and the economic characteristics <br /> of the market data are made in order to generate the final adjusted unit rate for the subject <br /> property. <br /> Downward adjustments were applied to those factors of comparison where the comparables <br /> were considered superior to the subject and, conversely, upward adjustments where the <br /> comparables considered inferior. The adjustable elements of comparison are: <br /> Real Property Rights Conveyed <br /> This adjustment is generally applied to reflect the transfer of property rights different from those <br /> being appraised, such as differences between properties owned in fee simple and in leased fee. <br /> In this analysis, no adjustments are required. <br /> Financing Terms <br /> This adjustment is generally applied to a property that transfers with atypical financing, such as <br /> having assumed an existing mortgage at a favorable interest rate. Conversely, a property may be <br /> encumbered with an above-market mortgage which has no prepayment clause or a very costly <br /> prepayment clause. Such atypical financing often plays a role in the negotiated sale price. <br /> In this analysis, no adjustments are required. <br /> Conditions of Sale <br /> This adjustment category reflects extraordinary motivations of the buyer or seller to complete <br /> the sale. Examples include a purchase for assemblage involving anticipated incremental value or <br /> a quick sale for cash. This adjustment category may also reflect a distress-related sale, or a <br /> corporation recording a non-market price. <br /> In this analysis, comparable 3 was lender-owned, and according to the listing broker, they had <br /> owned the property for several years and were motivated to sell for a below market price. <br /> 65 1 <br />